TOPIC

- Choose ONE of the following questions listed below
- Develop your answer using theories studied in class. It is mandatory to structure your answer using the format structure listed below
- The work should be a maximum 1,000 words (Introduction to Conclusion)

STRUCTURE OF THE WORK
- Cover page: Name, date, School name
- Abstract: 100 words max
- Table of Contents
- Introduction: Background, scope and objectives of the work
- Body of Analysis: Use theories, facts, figures, etc. to support your statements
- Conclusion: Summarize your results
- Bibliography: Minimum of 7 different sources
- Appendix: Maximum 4

Q1
Singapore is a small open economy in Asia. Mr Ping, the most visible economist of this country, writes:"The reduction of government expenditures and the strong increase in exports would crowd out domestic investments in Singapore.

But the inflow of foreign capital (into this country) would increase in both cases significantly". Do you agree with this statement?